NFT Trading Volume Plummets Amid Memecoin Frenzy and Soaring ETH Gas Fees

• NFT sales have been declining this month due to a surge in Ethereum (ETH) gas fees and the memecoin frenzy.
• According to blockchain intelligence platform DappRadar, NFT trading volume has only reached $333 million this month so far, putting May on track to be the first month in 2023 with a trading volume under $1 billion.
• There has however been a 27% increase in the average number of daily unique active wallets interacting with NFTs in May compared to April.

NFT Sales Plummeting

Non-fungible token (NFT) sales have plummeted this month amid the recent memecoin frenzy and a surge in the price of Ethereum (ETH) gas fees. According to blockchain intelligence platform DappRadar, NFT trading volume has only reached $333 million this month so far, putting May on track to be the first month in 2023 with a trading volume under $1 billion.

Memecoin Frenzy

DappRadar says a “considerable number” of crypto traders sold their NFT holdings at a loss at the beginning of the month to participate in the memecoin mania driven by the volatile frog-themed token Pepe (PEPE). “This has led to an uptick in on-chain activity, subsequently driving Ethereum’s gas fees above $100. This increase in transaction costs has negatively impacted the volume of low-value NFT trades on the blockchain, as traders grapple with affordability concerns.”

Increase In Unique Active Wallets

There has however been a 27% increase in the average number of daily unique active wallets interacting with NFTs in May compared to April, with DappRadar attributing the bump to the fanfare surrounding the new “Milady Maker” NFT collection.

Dominance Of Ethereum Chain

Ethereum continues to be the dominant NFT chain, controlling 81% of